Pradhan Mantri Mudra Yojana

Pradhan Mantri Mudra Yojana (PMMY) is a flagship scheme of Government of India to “fund the unfunded” by bringing such enterprises to the formal financial system and extending affordable credit to them.
Launched in 2015 to promote entrepreneurship, PMMY provides loans upto Rs. 10 lakh to the non-corporate, non-farm small/micro enterprises.
Under PMMY collateral free loans of upto Rs. 10 Lakh are extended by Member Lending Institutions (MLIs) viz Scheduled Commercial Banks, Regional Rural Banks (RRBs), Small Finance Banks (SFBs), Non Banking Financial Companies (NBFCs), Micro Finance Institutions (MFIs) etc.
The loans are given for income generating activities in manufacturing, trading and services sectors and for activities allied to agriculture.
Mudra loans are offered in three categories namely, ‘Shishu’, ‘Kishore’ and ‘Tarun’ which signifies the stage of growth or development and funding needs of the borrowers:-
- Shishu : covering loans upto Rs. 50,000/-
- Kishore : covering loans above Rs. 50,000/- and upto Rs. 5 lakh
- Tarun : covering loans above Rs. 5 lakh and upto Rs. 10 lakh
With an objective to promote entrepreneurship among the new generation aspiring youth, it is ensured that more focus is given to Shishu Category loans and then Kishore and Tarun categories.

The Ministry of Labour and Employment (MoLE) has conducted a sample survey at the national level to estimate employment generation under PMMY. As per the survey results, PMMY helped in generation of 1.12 crore net additional employment during a period of approximately 3 years (i.e. from 2015 to 2018).
As per findings of this survey, on an overall basis, loans under Shishu category accounted for 66% of additional employment generated by establishments owned by MUDRA beneficiaries followed by Kishore (19%) and Tarun (15%) categories.
Further, as on 01.07.2022, more than 7.66 crore loans amounting to Rs. 6.12 lakh crore have been extended to New Entrepreneurs/Accounts under PMMY, since inception of the Scheme.

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